(RTTNews) - Asian stock markets are exhibiting a mixed trend on Wednesday following a rather choppy session on Wall Street overnight. Some of the markets in the region did get off to a bright start, but are seen struggling for support at higher levels. With no significantly positive cues to warrant any strong buying, investors are seen indulging in some profit taking, cashing in on recent sharp rallies.

The Australian market is holding on in positive territory even as the mood remains a bit cautious amid mixed economic reports. Investors are seen indulging in selective buying in financials, materials, energy and property trusts stocks.

The benchmark S&P/ASX 200 index, which edged up to 4,768 after a slight fall from higher levels, is currently trading at 4,761, up 27.4 points, or 0.6%, over its previous close. The broader All Ordinaries index is up 27 points, or 0.6%, at 4,771.

Among key bank stocks, ANZ Bank, National Australia Bank and Westpac Banking Corporation are trading with modest gains, while Commonwealth Bank of Australia is trading in negative territory with a modest loss. Diversified financials stock Macquarie Group is down nearly 1% from its previous close.

Top miners Rio Tinto and BHP Billiton are up 2% and 1.5% respectively. Newcrest Mining is trading higher by about 1%. Orica, Lihir Gold and Fortescue Metals are up with modest gains, while Incitec Pivot and Bluescope Steel are trading weak.

Energy stock Woodside Petroleum is up nearly 1%. Among other stocks in the energy space, Santos and Origin Energy are up with modest gains, while Oil Search is trading flat.

Among insurance stocks, QBE Insurance is gaining 1.5% and AMP is trading 1.25% up, while Suncorp-Metway and Insurance Australia are trading notably lower.

Ausenco Ltd has lowered its profit and revenue guidance for calendar 2009 as potential clients delay the awarding of new contracts. The engineering and project management company now expects full year sales revenue for calendar 2009 to come in between A$435 million and A$465 million. Underlying net profit is now forecast between A$26 million and A$30 million. The stock is currently trading 2.5% down from Tuesday’s closing price.

On the economic front, total personal finance commitments in Australia fell 1.8% in September, seasonally adjusted, to A$7.016 billion, from A$7.146 billion in August, the Australian Bureau of Statistics said on Wednesday. Total commercial finance rose 8%, seasonally adjusted, to A$31.576 billion, from A$29.241 billion in August, while lease finance fell 3.6% in September to A$381 million, compared with A$396 million in August. Housing finance for owner occupation rose 6.7% to A$17.596 billion in September from A$16.493 billion in August.

In another news, consumer confidence in Australia has fallen after the second consecutive interest rate rise. According to a survey, the Westpac Melbourne Institute Index of Consumer Sentiment fell 2.5% to 118.3 in November, down from 121.4 in October.

In the currency market, the Australian dollar opened higher. In early trades, the Aussie was quoting at US$0.9303-US$0.9306, up from Tuesday’s close of US$0.9257-US$0.9261. Around noon, the Australian dollar was trading at US$0.9312-US$0.9315.

Buoyed by better-than-expected Japanese machinery orders data for September and the Dow’s jump to a 13-month closing high overnight, stocks moved higher in early trades in Tokyo. However, the market pared some of its gains subsequently with a section of traders choosing to take profits.

The benchmark Nikkei 225 index, which rose to 9,949.7 in early trades, is currently up 30.10 points, or 0.3%, at 9,901.

On the economic front, according to a report from the Cabinet Office, Japanese core machinery orders rose 10.5% from the previous month in September, due to strong demand from non-manufacturers, and from overseas customers. The rise was much better than the 3.2% mean increase expected by economists. Orders rose 0.5% in August and fell 9.3% in July, the Cabinet Office said. The data showed that orders fell 22.0% in September compared with the same month the previous year.

The government said core machinery orders for the July-September period were down 0.9% from the previous quarter, but it expects machinery orders to rise 1.0% in the October-December quarter from the quarter before.

Machinery and manufacturing sectors stocks are trading higher. Shares of machinery equipment maker Fanuc Ltd. gained in strength in early trades thanks to an unexpected jump in Japanese core machinery orders in September.

Steel and non-ferrous metal stocks are exhibiting a mixed trend. Automobile and bank stocks are also trading mixed. Insurance, food, chemicals and pharmaceuticals are mostly trading higher.

Japan Airlines is trading over 6% up after the government said the Development Bank of Japan will extend a bridge loan by the end of the month.

Daikin Industries is trading firm after the company said Tuesday evening that its group net profit for the year ending March will likely be higher than the previously projected 12 billion yen. The maker of commercial-use air-conditioners now expects its group net profit to fall 36% on the year to 14 billion yen. The revised outlook is attributed to lower fixed costs.

Shares of retailer Aeon Co. are down nearly 3% on share-dilution concerns following an announcement by the company on Tuesday evening that it will issue a total of 100 billion yen in convertible bonds.

In the currency market, the U.S. dollar traded in the upper 89 yen range early Wednesday in Tokyo, down slightly from its levels overnight in New York. In early trades, the dollar fetched 89.68-89.72 yen, down from Tuesday’s close of 89.78-89.88 yen in New York and 89.86-89.87 yen in Tokyo. The yen is currently trading at 89.57 to the U.S. dollar.

After opening higher and trading firm for more than an hour, the South Korean stock market is drifting lower with a stronger won and concerns over falling revenues dragging stock prices down in subsequent trades.

The benchmark KOSPI index, which rallied to 1,592.6 in earlier in the day, is currently trading in the red at 1,578, down 4.3 points, or 0.27%, from its previous close. On Tuesday, the KOSPI index had ended in the green with a marginal gain of 5.5 points, or 0.35%, at 1,582.

Among bank stocks, Woori Finance is trading lower by 2.8%, Korea Exchange Bank is down by about 1.4% and KB Financial is declining 0.8%, while Shinhan Financial is trading in positive territory with a gain of 1.2%.

Technology stocks Hynix Semiconductor and LG Electronics are down by over 1% from their previous closing prices, while heavyweight Samsung Electronics and LG Display LCD are up with modest gains.

In the automobile space, Ssangyong Motor, Hyundai Motor and Kia Motor are trading lower. Among shipping stocks, Samsung Heavy Industries and Daewoo Shipbuilding are exhibiting weakness, while Hyundai Heavy Industries and STX Pan Ocean are up 0.5% and 1.9% respectively.

In the oil sector, SK Holdings is up 1.2%, while S-Oil is trading in the red with a modest loss. KEPCO is gaining about 0.5%. Steel stocks Hyundai Steel and POSCO are exhibiting weakness. Airlines and telecom stocks are trading mixed.

Among other markets in the Asia-Pacific region, Hong Kong, Indonesia and Singapore are trading modestly higher. Shanghai, New Zealand and Taiwan are exhibiting some weakness. Markets across the region had closed mostly higher on Tuesday.

On Wall Street, stocks moved in a choppy fashion on Tuesday amid a lack of significant economic news. The major averages ended the session on opposite sides of the unchanged line, with the Dow posting a modest gain and setting a new one-year high. The Dow rose 20 points, or 0.2%, to 10,247, while the Nasdaq fell 3 points, or 0.1%, to 2,151.1 and the S&P 500 closed down almost unchanged at 1,093.

Major European markets showed a lack of direction on Tuesday. U.K.’s FTSE 100, the French CAC 40 index and the German DAX index all closed near the unchanged mark.

Crude oil gave back early gains and finished modestly lower on Tuesday as weaker global equities pulled prices lower. Light sweet crude for December delivery fell to US$79.05 per barrel, down 38 cents on the session.

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Posted in Categories: Australia, Eurozone, Japan, New Zealand, Releases, Stocks, USA.

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